Acceleration Clause:  Clause used in an installment note and mortgage (or deed of trust), which gives the lender the right to demand payment in full upon the happening of a certain event, such as failure to pay an installment by a certain date, change of ownership without the lender's consent, destruction of the property (see Waste), or other event which endangers the security of the loan. (See also: Alienation Clause).

Acceptance:  Voluntarily agreeing to the price and terms of an offer. Offer and acceptance create a contract.

Accrued Interest:  Interest on a note, bond, etc. which has been earned but not yet paid. Since interest is usually paid in arrears, accrued interest does not necessarily indicate a delinquency in payment. (See also: Accumulated Interest).

Act of God:  Damage caused by nature (floods, winds, etc.) rather than destruction by man.

Addendum:  Something added. A list or other material added to a document, letter, contractual agreement, escrow instructions, etc. (See also: Amendment).

Adjustable Mortgage Loan:  Mortgage loans under which the interest rate is periodically adjusted to more closely coincide with current rates. The amounts and times of adjustment are agreed to at the inception of the loan. Also called: Adjustable Rate Loans, Adjustable Rate Mortgages (ARM's), Flexible Rate Loans, Variable Rate Loans. (See also: Indexing, Rate Index).

Agent:  One who is authorized to act for or represent another (principal), usually in business matters. Authority may be express or implied.

Amendment:  A change, either to correct an error or to alter a part of an agreement without changing the principal idea or essence.

Amortization:  Payment of debt in regular, periodic installments of principal and interest, as opposed to interest only payments. (See also: Balloon Note; Straight Note).

Annual Percentage Rate:  The yearly interest percentage of a loan, as expressed by the actual rate of interest paid. For example: 6% add-on interest would be much more than 6% simple interest, even though both would say 6%. The A.P.R. is disclosed as a requirement of federal truth in lending statutes.

Appraisal:  An opinion of value based upon a factual analysis. Legally, an estimation of value by two disinterested persons of suitable qualifications.

Attorney-In-Fact:  One who is appointed to act (as agent) for another (principal) under a power of attorney. The scope of the agent's authority is limited to that given by the power of attorney, which may be limited to one specific act or may be broader. (See also: Power of Attorney)

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Binder:  A report issued by a title insurance company setting forth the condition of title to certain property as of a certain date, and also setting forth conditions which, if satisfied, will cause a policy of title insurance to be issued. Also called a commitment. (See also: Preliminary Title Report). (2) A policy of title insurance (used primarily by investors) calling for a reduced rate for a future policy if the property is sold within a specified period.

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Bona Fide:  A legal term which refers to any actions, situations, or persons that are honest, in good faith, and without fraud.

Breach of Contract:  Failure to perform a contract, in whole or part, without legal excuse.

Buydown:  A payment to the lender from the seller, buyer, third party, or some combination of these, causing the lender to reduce the interest rate during the early years of a loan. The buydown is usually for the first 1 to 5 years of the loan. (See also: Certificate Backed Mortgage).

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Cap:  A maximum amount of a charge. Example: An adjustable Rate Mortgage with a 5% rate cap could not adjust the interest rate by more than 5%.

Certificate of Occupancy:  A certificate issued by a local building department to a builder or renovator, stating that the building is in proper condition to be occupied.

Closing:  In real estate sales, the final procedure in which documents are executed and /or recorded, and the sale (or loan) is completed. (2) A selling term meaning the point at which the client or customer is asked to agree to the sale or purchase and sign the contract.

Cloud on Title:  An invalid encumbrance on real property, which, if valid, would affect the rights of the owner. For example: A sells lot 1, tract 1, to B. The deed is mistakenly drawn to read lot 2, tract 1. A cloud is created on lot 2 by the recording of the erroneous deed. The cloud may be removed by quitclaim deed, or if necessary, by court action.

Commission:  An amount, usually as a percentage, paid to the agent (real estate broker) as compensation for his services. The amount to a real estate broker is generally a percentage of the sale price or total rental.

Common Area:  The area owned in common by the owners of condominiums or planned unit development homes in a subdivision.

Comparables:  Properties used as comparisons to determine the value of a specific property.

Concession:  A granting of a right, by government or privately, usually to use of land or area in a building to carry on a business.

Condominium:  A structure or two or more units, the interior space of which are individually owned; the balance of the property (both land and building) is owned in common by the owners of the individual units. The size of each unit is measured from the interior surfaces (exclusive of paint or other finishes) of the exterior floors, and ceiling. The balance of the property is called the common area.

Contingency:  Commonly, the dependence upon a stated event which must occur before a contract is binding. For example: The sale of a house, contingent upon the buyer obtaining financing.

Conventional Loan:  A mortgage or deed of trust not obtained under a government insured program, (such as F.H.A. or V.A.).

Conveyance:  Transfer of title to land. Includes most instruments by which an interest in real estate is created, mortgaged, or assigned.

Credit Report:  A report on the past ability of a loan applicant to pay installment payments. Several national and local companies make such reports.

Deed Restrictions:  Limitations on the use of property placed in conveyance deed by the grantor, which bind all future owners.

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Deferred Maintenance:  Repairs necessary to put a property in good condition. A concern of a purchaser. An owner may have an account for such maintenance.

Delivery:  In conveyancing, the placing of the property in the actual or constructive possession of the grantee. Usually accomplished by delivery of a deed to the buyer or agent of the buyer, or by recording said deed.

Deposit:  Money given by the buyer with an offer to purchase. Shows good faith. Also called earnest money.

Disbursements:  Payments made during the course of an escrow or at closing.

Domicile:  A legal term signifying a place where a person has his permanent home. The most accurate meaning is the layman's understanding of the place where a person "lives", since this takes into consideration the intent of the person to make a particular property his "home".

Donee:  One who receives a gift.

Donor:  One who gives a gift.

Double Escrow:  Two concurrent escrows on the same property, having the same party as buyer and seller of the property. Example: Escrow 1- A buys from B. Escrow 2- sells the same property to C. A is using C's money to buy B's property. The process is illegal in many states unless full disclosure is made.

Dower:  A common law interest of a wife in the property of her deceased husband.  Being changed in many states by statute to give more equality between men and women in property rights.

Due on Sale Clause: A type of acceleration clause, calling for a debt under a mortgage or deed or trust to be due in its entirety upon transfer of ownership of the secured property. Also called a "due-on-sale" clause.

Earnest Money: Money given by the buyer with an offer to purchase. Shows good faith.

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Easement:  A right created by grant, reservation, agreement, prescription, or necessary implication, which one has in the land of another. It is either for the benefit of land (appurtenant), such as right to cross A to get to B, or "in gross", such as a public utility easement.

Egress: A term concerning a right to come and go across the land (public or private) of another. Usually part of the term ingress and egress.

Elevation:  Height above sea level. The exterior design of a structure, usually but not necessarily, viewed from the front. Called a horizontal elevation.

Eminent Domain:  A governmental right to acquire private property for public use by condemnation, and the payment of just compensation.

Encroachment:  Generally, construction onto the property of another, as of a wall, fence, building, etc.

Encumbrance: A claim, lien, charge, or liability attached to and binding real property. Any right to, or interest in, land which may exist in one other than the owner, but which will not prevent the transfer of fee title.

Entity:  A separate existence or being, most commonly referring to a corporation or other form of business, rather than an individual.

Equity Line of Credit:  A combination of a line of credit and equity loan. A maximum loan amount is established based on credit and equity. A mortgage  (deed of trust) is recorded against the potential borrower's property for said maximum loan amount. The potential borrower has the right to borrow, as needed, up to the amount of the mortgage.

Erosion:  The wearing away, over a prolonged period, of rock, earth, or other portions of land.

Escrow:  Delivery of a deed by a grantor to a third party for delivery to the grantee upon the happening of a contingent event. Modernly, in some states, all instruments necessary to the sale (including funds) are delivered to a third (neutral) party, with instructions as to their use.

Escrow Instructions: Instructions which are signed by both buyer and seller, and which enable an escrow agent to carry out the procedures necessary to transfer real property, a business, or other assignable interest.

Escrow Officer: An escrow agent. In some states, one who has, through experience and education, gained a certain degree of expertise in escrow matters.

Ethics:  With regard to professions, a code of professional standards, containing aspects of fairness and duty to the profession and the general public.

Evidence of Title:  A document establishing ownership to property.  Most commonly, a deed.

Exclusive Agency Listing:  A listing or agreement protecting the listing broker's commission against the sale of the property by another agent but not against the sale by the principal. The term is not universal, as some areas use the term, nonexclusive listing, to describe this agreement.

Exclusive Listing:  A written contract between a property owner and a real estate broker, whereby the owner promises to pay a fee or commission to the broker if certain real property of the owner is sold during a stated period, regardless of whether the broker is or is not the cause of the sale. The broker promises to put forth his best efforts to sell the property, and may make specific promises as to advertising or other promotion in certain instances.

Execute:  To complete; to fulfill a purpose, such as to execute an instrument, meaning to sign, seal and deliver.

Fair Credit Reporting Act:  A federal law giving one the right to see his or her credit report so that errors may be corrected. A lender refusing credit based on a credit report must inform the buyer which company issued the report. The buyer may see the report without charge if refused credit, or for a charge if just curious.

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Fair Market Value:  Price that probably would be negotiated between a willing seller and a willing buyer in a reasonable time. Usually arrived at by comparable sales in the area.

Federal Discount Rate:  The interest rate charged to member banks borrowing from the Federal Reserve Bank.

Federal Tax Lien:  A lien attaching to property for nonpayment of a federal tax (estate, income, etc.). A federal tax lien differs from other liens in that it is not automatically wiped out by foreclosing on a mortgage or trust deed recorded before the tax lien (except by judicial foreclosure).

Fee Simple: An estate under which the owner is entitled to unrestricted powers to dispose of the property, and which can be left by will or inherited. Commonly, a synonym for ownership.

First Mortgage:  A mortgage having priority over all other voluntary liens against certain property.

Foreclosure:  A proceeding in or out of court, to extinguish all rights, title, an interest, of the owner(s) of property in order to sell the property to satisfy a lien against it.

Forgery:  A false signature or material alteration with intent to defraud. The forged signature of the grantor will not pass title regardless of recording or lack of knowledge by the grantee or future grantees.

Full Disclosure:  In real estate, revealing all the known facts which may affect the decision of a buyer or tenant. A broker must disclose known defects in the property for sale or lease.

Fully Amortizing Loan:  A loan of equal, regular payments which cause the principal and interest to be completely paid by the due date.

General Lien:  A lien such as a tax lien or judgment lien which attaches to all property of the debtor rather than the lien of, for example, a trust deed which attaches only to specific property.

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Gift Deed:  A deed for nominal consideration.

Good Faith:  Something done with good intentions, without knowledge of fraudulent circumstances, or reason to inquire further.

Grace Period:  A period of time past the due date for a payment, during which time a payment may be made and not considered delinquent.

Grandfather Clause:  The clause in a law permitting the continuation of a use, business, etc., which, when established, was permissible but, because of a change in the law, is now not permissible.

Grantee:  One to whom a grant is made. Generally, the buyer.

Grantor:  One who grants property or property rights.

Growing Equity Mortgage:  A fixed rate, graduated payment loan allowing low beginning payments and a shorter term because of higher payments as the loan progresses. Based on the theory of increasing income by the buyer and, therefore, ability to make higher future  payments.

Holdback:  Portion of a loan held back by the lender until a contingency is met. In the sale of a home insured by V.A. or F.H.A., funds may be held back to make necessary improvements to bring the property to V.A. or F.H.A. standards.

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Homeowners Association:  An association of people who own homes in a given area, formed for the purpose of improving or maintaining the quality of the area. An association formed by the builder of condominiums or planned developments, and required by statute in some states.

Ingress: A right to enter upon and pass through land.

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Interest Rate:  The percentage of an amount of money which is paid for its use for a specified time. Usually expressed as an annual percentage.

Interest Rate Cap:  The maximum interest rate increase of an Adjustable Mortgage Loan. For example: a 12% loan with a 5% interest rate cap would have maximum interest for the life of the loan which would not exceed 17%.

Involuntary Conveyance:  A transfer of real property without the consent of the owner, such as by a divorce decree, by condemnation, etc.

Judgment:  The decision of a court of law. Money judgments, when recorded, become a lien on real property of the defendant.

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Judgment Lien:  A lien against the property of a judgment debtor. An involuntary lien.

Jurat:  The certificate of an officer before whom a writing was sworn to, such as a notary public.

Land Contract:  An installment contract for the sale of land. The seller (vendor) has legal title until paid in full. The buyer (vendee) has equitable title during the contract term.

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Landlocked Parcel:  A parcel of land surrounded entirely by privately owned land, with no access to the public right of way (road). Condemnation for a limited access highway is a major cause of such parcels.

Late Charge:  A penalty for failure to pay an installment payment on time. Usually not allowed as interest for tax deductions. May or may not be included as usury.

Lease:  An agreement, by which an owner of real property (lessor) gives the right of possession to another (lessee), for a specified period of time (term) and for a specified consideration (rent),

Lease with Option to Purchase:  A lease under which the lessee has the right to purchase the property. The price and terms of the purchase must be set forth for the option to be valid. The option may run for the length of the lease or only for a portion of the lease period.

Leasehold Interest:  The interest which the lessee has in the value of the lease itself in condemnation proceedings to determination. The difference between the total remaining rent under the lease and the rent lessee would currently pay for similar space for the same time period.

Lease Purchase Agreement:  See Lease with Option to Purchase.

Legal Description:  A method of geographically identifying a parcel of land, which is acceptable in a court of law.

Legal Notice:  The notice required by law in a particular case. May be actual notice, constructive notice, etc. 

Letter of Credit:  A letter, usually from a bank, requesting a person or company to extend credit to a certain person or company and guarantying payment. Most commonly used in the purchase of goods from another country. The letter may be revocable or irrevocable, but most parties insist on the irrevocable.

Letter of Intent: A formal method of stating that a prospective developer, buyer, or lessee, is interested in property. Not an offer and creates no obligation. However, a builder who wants to build an office  building, for example, may influence a lender by showing letters of intent from major prospective tenants.

Liable:  Obligated, responsible.

Lien:  An encumbrance against property for money, either voluntary or involuntary. All liens are encumbrances but all encumbrances are not liens.

Lien Waiver:  For our purposes, a waiver of mechanic's lien rights, signed by subcontractors so that the owner or general contractor can receive a draw on construction loan.

Life Estate:  An estate in real property for the life of a living person. The estate then reverts back to the grantor or on to a third party.

Loan Origination Fee: A one time set up fee charged by the lender.

Loan Policy: A title insurance policy insuring a mortgagee, or beneficiary under a deed of trust, against loss caused by invalid title in the borrower, or loss of priority of the mortgage or deed of trust.

Loan to Value Ratio:  The ratio, expressed as a percentage, of the amount of a loan to the value or selling price of real property. Usually, the higher the percentage, the greater the interest charged. Maximum percentages for banks, savings and loans, or government insured loans, are set by statute.

Loss Payable Clause:  A clause in a fire insurance policy, listing the priority of claims in the event of destruction of the property insured. Generally, a mortgagee, or beneficiary under a deed of trust, is the party appearing in the clause, being paid to the amount owing under the mortgage or deed of trust before the owner is paid.

Majority: The age at which a person is no longer a minor, and is legally entitled to contract and enjoy civic rights, such as voting.

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Market Value:  The highest price a willing buyer would pay and a willing seller accept, both being fully informed, and the property exposed for a reasonable period of time. The market value may be different from the price a property can actually be sold for at a given time.

Marketability:  Salability. The probability of selling property at a specific time, price, and terms.

Marketable Title:  Title which can be readily marketed (sold) to a reasonably prudent purchaser aware of the facts and their legal meaning concerning liens and encumbrances.

Mechanic's Lien: A lien created by statute for the purpose of securing priority of payment for the price or value of work performed and materials furnished in construction or repair of improvements to land, and which attaches to the land as well as the improvements.

Mortgage:  To hypothecate as security, real property for the payment of a debt. The borrower retains possession and use of the property.

Mortgage Broker:  One, who for a fee, brings together a borrower and lender, and handles the necessary applications for the borrower to obtain a loan against real property by giving a mortgage or deed of trust as security.

Mortgage Servicing:  Controlling the necessary duties of a mortgagee, such as collecting payments, releasing the lien upon payment in full, foreclosing if in default, and  making sure the taxes are paid, insurance is in force, etc. Servicing may be done by the lender or a company acting for the lender, for a servicing fee.

Mortgagee:  The party lending the money and receiving the mortgage. Some states treat the mortgagee as the "legal" owner, entitled to rents from the property. Other states treat the mortgagee as a secured creditor, the mortgagor being the owner. The latter is the more modern and accepted view.

Mortgagor: The party who borrows the money and gives the mortgage.

Notary:  One who is authorized by the state or federal government, to administer oaths, and to attest to the authenticity of signatures.

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Note:  A unilateral agreement containing an express and absolute promise of the signer to pay to a named person, or order, or bearer, a definite sum of money at a specified date or on demand. Usually provides for interest and, concerning real property, is secured by a mortgage or trust deed.

Occupancy:  With reference to land, the word has become synonymous with possession.

Oil & Gas Leases:  A lease giving the lessee the right to extract oil and gas from land. More like a mining lease than a land lease, in that the lessee has an ownership interest in a portion of the property (the oil and gas) rather than just the use of the property. The lessor is generally paid based on the oil and gas taken.

Open End Mortgage:  A mortgage permitting the mortgagor to borrow additional money under the same mortgage, with certain conditions, usually as to the assets of the mortgage.

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Owner's Policy:  Title insurance for the owner of property, rather than a lienholder.

Power of Attorney:  An authority by which one person (principal) enables another (attorney in fact) to act for him.

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Prepaid Interest:  Interest paid before coming due.

Prepayment Penalty:  A penalty under a note, mortgage, or deed penalty, either in full or in part.

Private Mortgage Insurance (PMI):  Insurance against a loss by a lender in the event of default by a borrower (mortgagor). The  insurance is similar to insurance by a governmental agency such as FHA, except that it is issued by a private insurance company.

Probate: Originally, the proving that a will was valid. Modernly, any action over which probate court has jurisdiction.

Promissory Note: A promise in writing, and executed by the maker to pay a specified amount during a limited time, or on demand, or at sight, to a named person, or on order, or to bearer.

PUD:  Planned Unit Development, A subdivision of five or more individually owned lots with one or more other parcels owned in common or with reciprocal rights in one or more other parcels. The lots are generally small, being the exact size of the improvements, or slightly larger.

Purchase Money Mortgage:  A mortgage given from buyer to seller to secure all or a portion of the purchase price.  Any mortgage from which the funds are used to purchase the property.

Quiet Title: (See: Action to Quiet Title).

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Quit Claim Deed:  A deed operating as a release; intended to pass any title, interest, or claim which the grantor may have in the property, but not containing any warranty of a valid interest or title in the grantor.

Reconveyance:  An instrument used to transfer title from a trustee to the equitable owner of real estate, when title is held as collateral security for a debt. Most commonly used upon payment in full of a trust deed. Also called a deed of reconveyance or release.

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Recorded Map:  A map recorded in a county recorder's office. May be a subdivision map or describe a non-subdivided parcel. Reference to a recorded map is commonly used in legal descriptions.

Recorded Plat:  A subdivision map filed as a matter of public record.

Release:  An instrument releasing property from the lien of the mortgage, judgment, etc. When a trust deed is used, the instrument is called a reconveyance. In some areas, a "discharge" is used instead of a release.

Rescission:  To void or cancel in such a way as to treat the contract or other object of the recision as if it never existed.

Restriction: Most commonly used to describe a use or uses prohibited to the owner of land. Restrictions are set forth by former owners in deeds or in the case of a subdivision, a declaration of restrictions is recorded by the developer. A limitation on the use of the property by law (zoning ordinances) may also be termed a restriction.

Reversionary Interest: An interest held in a reversion (future right to property in possession of another).

Right of Survivorship:  The right of a survivor of a deceased person to the property of said deceased. A distinguishing characteristic of a joint tenancy relationship.

Right of Way:  A strip of land which is used as a roadbed, either for a street or railway. The land is set aside as an easement or in fee, either by agreement or condemnation. May also be used to describe the right itself to pass over the land of another.

Secondary Mortgage Market:  The buying and selling of first mortgages or trust deed by banks, insurance companies, government agencies, and other mortgagees. This enables lenders to keep an adequate supply of money for new loans. The mortgages may be sold at full value (par) or above, but are usually sold at a discount. The secondary mortgage market should not be confused with second mortgage.

Setback Ordinance:  Part of a zoning ordinance. Regulates the distance from the lot line to the point where improvements may be constructed.

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Settlement Statement:  A statement prepared by broker, escrow, or lender, giving a complete breakdown of costs involved in a real estate sale. A separate statement is prepared for the seller and the buyer.

Simultaneous Issue: A simultaneous issuance by a title insurance company of policies insuring both an owner and a lender. The lender's policy is issued at a reduced rate.

Single Family House:  A general term originally used to distinguish a house designed for use by one family from an apartment house. More recently, used to distinguish a house with no common area from a planned development or condominium.

Slander of Title: The making of malicious, untrue statements, regarding one's title or interest in property. The statements must be made to a third party and must cause injury to the party against whom the statements are made.

Statutory Lien:  An involuntary lien (created by law rather than by contract). Includes tax liens, judgment liens, mechanic's liens, etc.

Subdivision:  Commonly, a division of a single parcel of land into smaller parcels (lots) by filing a map describing the division, and obtaining approval by a governmental commission (city or county). The exception is a condominium, which is sometimes called a "one lot subdivision".

Subject to Clause:  A clause in a deed, stating that the grantee takes title "subject to" an existing mortgage. The original mortgagor is alone responsible for any deficiency, should there be foreclosure of the mortgage. Differs from an "assumption" clause, whereby the grantee "assumes" and agrees to pay the existing mortgage.

Subordination Agreement:  An agreement by which an encumbrance is made subject (junior) to a junior encumbrance. For example: A loan on vacant land is made subject to a subsequent construction loan.

Survey:  The measurement of the boundaries of a parcel land, its area, and sometimes its topography.

Tax Deed: Deed from tax collector to governmental body after a period of non-payment of taxes according to statute.

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Tenancy in Common:  An undivided ownership in real estate by two or more persons. The interests need not be equal, and, in the event of the death of one of the owner, no right of survivorship in the other owner exists.

Term Mortgage: See Straight Term Mortgage

Timesharing:  A concept of ownership increasing in popularity as real estate prices rise. The purchase of an undivided interest (usually in a resort area condominium) for a fixed or variable time period. For example: Fifty-two different purchasers buy one condominium; each agrees to possession for one week per year. Costs (taxes, insurance, maintenance, etc. ) are shared equally. Possession may be fixed, or by reservation, by lease, license, etc.

Title Company:  An agency issuing the policy of a title insurance company.

Title Insurance:  Insurance against loss resulting from defects of title to a specifically described parcel of real property. Defects may run to the fee (chain of title) or to encumbrances.

Title Search:  A review of all recorded documents affecting a specific piece of property to determine the present condition of title.

Torrens Title:  A system by which title to land is registered with a registrar of land titles, instead of being recorded. Originally established by Sir Robert Torrens in Australia in 1858.

Townhouse:  Originally a house in a city as opposed to a country estate. More recently the term is applied to a certain types of row houses, whether planned unit developments or condominiums.

Transfer Tax: State tax on the transfer of real property. Based on purchase price or money changing hands. Check statutes for each state. Also called documentary transfer tax.

Treble Damages:  Three times the amount of actual damages. Given when damages were caused by a deliberate or grossly negligent act of the defendant.

Trust:  A fiduciary relationship under which one holds property (real or personal) for the benefit of another. The party creating the trust is called the settlor, the party holding the property is the trustee, and the party for whose benefit the property is held is called the beneficiary.

Truth in Lending:  Also referred to as Regulation Z. Part of the Consumer Credit Protection Act. Federal legislation designed to protect borrowers by requiring lenders to furnish information regarding the cost of the loan. The law required interest to be expressed as the annual percentage rate (APR) to the nearest 1/8 of one percent. The APR must include charges such as loan fees, discount points, servicing fees, etc., as well as interest. The law applies to 1 to 4 family residential property only. Also applies to other consumer loans.

Undivided Interest:  A partial interest by two or more people in the same property, whether the interest of each is equal or unequal.

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Unmarketable Title:  Not saleable. A title which has serious defects.

Unrecorded Instrument:  A deed, mortgage, etc., which is not recorded in the county recorder's office and, therefore, not protected under recording statutes. Valid between the parties involved, but not against innocent third parties.

Unsecured:  Generally referring to an obligation which has only a promise as security. A note would be unsecured, a note and mortgage would be secured.

Vacate:  To move out

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Valuation:  The estimating of value. Appraisal.

Variance:  Change of a portion of zoning requirements without changing the zoning.

Vendee: Purchaser or buyer, especially on a land contract.

Vendor:  The person who transfers property by sale. Another word for "seller". Commonly used in land contract sales.

Warranty:  A legal, binding, promise, given at the time of a sale, whereby the seller gives the buyer certain assurances as tot he condition of the property being sold. Warranties as to real property have taken on a lesser role with the increase of the use of title insurance.

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Warranty Deed:  A deed used in many states to convey fee title to real property. Until the widespread use of title insurance, the warranties by the grantor were very important to the grantee. When title insurance is purchased, the warranties become less important as a practical means of recovery by the grantee for defective title.

Working Capital: Cash, or assets which are readily convertible to